Target Exam

CUET

Subject

Sociology

Chapter

Social Change and Development in India: Change and Development in industrial Society

Question:

Name the process by which the Government may sell its shares in public sector companies.

Options:

Disinvestment

Withdrawal

Privatization

Outsourcing

Correct Answer:

Disinvestment

Explanation:

The correct answer is Option (1) → Disinvestment

Disinvestment refers to the process by which the government sells or reduces its shares in public sector companies. It is a strategic measure often taken to raise revenue, improve efficiency in public enterprises, and reduce the fiscal burden. Unlike privatization, which involves transferring ownership entirely to private entities, disinvestment may involve partial sale while the government retains some control or ownership in the company.